The invention concerns an automated teller machine which cashes so-called xe2x80x9csecond-party checks.xe2x80x9d The machine delivers currency to the person cashing the check, but, in general, makes no deduction from an account maintained by the person. The reason is that the check is written by another party, and drawn on that party""s account.
For various reasons, numerous people do not maintain bank accounts. The reasons may include (1) a distrust of banks, (2) a preference for dealing exclusively in cash, and (3) an infrequent need for a bank account. It may seem odd that the last factor, infrequent need, would promote avoidance of a bank account. However, many banks impose penalties on people who maintain small accounts or who write checks infrequently. These charges discourage maintenance of the accounts.
Even though these people lack accounts, they must still cash checks, such as payroll checks and government checks, including social security checks and welfare checks. It would seem that these checks could be cashed at a bank, but this does not often occur, for two primary reasons.
The first is distance: the bank on which a check is drawn will cash the check, and may even be required by law to do so. However, visiting the drawee-bank often requires travelling a long distance.
The second reason is that banks other than the drawee-bank, in general, will only cash checks for persons maintaining accounts at those banks. However, as stated above, the people under consideration do not maintain bank accounts.
Therefore, for at least these two reasons, people lacking bank accounts tend to avoid cashing checks at banks.
To accommodate these people, check-cashing xe2x80x9cstoresxe2x80x9d have developed. These stores are sometimes called xe2x80x9ccurrency exchanges.xe2x80x9d While these stores provide the service of cashing checks, they tend to impose high fees upon the check-cashing transaction.
An object of the invention is to utilize an Automated Teller Machine (ATM) to cash checks.
A further object of the invention is to provide an improved ATM machine.
In one form of the invention, an ATM accepts a check from a person, and delivers cash, but without modifying an account maintained by the person.